I need help with this assignment. Using the instructions below, conduct a Breake

Question

I need help with this assignment.

Using the instructions below, conduct a Breakeven analysis for your own business. Breakeven Analysis Using data compiled to compute the breakeven analysis for your own business, complete the following:

1. One paragraph description of your business.

2. Definition of a unit.

3. Enter the following data in to the Excel module. Assume this is the Most Likely scenario. a. Sale price per unit b. A minimum of two variable costs c. A minimum of five fixed costs d. A minimum profit component of $15,000 4. Manipulate the data to arrive at a realistic sales in units per year. 5. Summarize your findings in a two-three paragraph document. 1. Breakeven spreadsheet 2. Letter summarizing your findings There is a breakeven analysis which I was unable to attach.

I can handle definitions, but I don't understand the rest of the assignment, and it's due on this Saturday. Please help.

Thank you

Fredrick

Explanation / Answer

1. Business description

I am having a street food center at city-mall.My average selling price per unit for Cheese rolls (specialized) is $10/unit

My fixed costs are my labor cost, Rent, Insurance, Utilities, and Advertising. The details of each cost are given below.My variable expenses are the material cost and the electricity cost per unit basis.Currently, my profit is less and I need to increase my profit to $15000 per month.

The simulation is sown in excel(note u can use the same formula and only change the number of units to manipulate your profit required)

We know from basic calculation

Profit = Total revenue- Total cost

= Total sales- Total fixed cost- Total variable cost

Profit given is required 15000

Please check the excel sheet for calculations

Formula---

Note you can only change the number of units (C4) to get required profit

I arrived at 9825 from calculations

15000= Selling price*X - Fixed cost- Variable cost* X

= 10*X-4650-8*X

=> X = 9825

So we conclude that to make at least 15000 profit we need to sell 9825 units of cheese rolls this month.This analysis helps businessmen to know their status of the business and calculate the minimum selling units to gain profit.At break-even point the profit is zero so with the above equation putting the profit as zero we can get the break-even point.

please comment if any doubt

Thanks

Break Even simulation Selling price per unit 10 in dollars No of units to be sold(x) 9825 Fixed Costs Variable costs/unit Labour cost 1500 material 6 Rent 2000 Electricity 2 Insurance 500 Total 8 Utilities 450 Advertising 200 Total 4650 Required Profit 15000 Profit simulation 15000

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